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If they want, and if they are in a position to do so, employers can pay employees’ income tax and USC liabilities arising from the Temporary Wage Subsidy Scheme payments. 

Revenue have confirmed that if an employer does pay their employees’ liability this is not a Benefit in Kind (BIK) so there will be no tax charge for the employee where the employer pays the income tax and USC arising on the TWSS payments. 

You should note that this concession is only available with respect to payments made by employers on behalf of their employees up to the end of June 2021.

Employers will not receive a deduction with respect to Corporation Tax as these payments would not be regarded as wholly and exclusively incurred for the purposes of the employer’s trade or profession.

If you are considering paying your employees’ tax liability on the TWSS we advise you to engage with your accountant on the best way to proceed. 



Date published 13 Jan 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.


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